Half of farms in Finland diversifying with supplementary business activities for greater income

According to data collected by Pro Agria, as many as half of farms engage in additional business activities alongside primary production. This diversification is significant for many families, often yielding greater income than farming alone. The Natural Resources Institute Finland reports that in 2020, about one-third of farms were diversified, while market research firm Kantar indicates this number could be closer to fifty percent. Discrepancies may arise from different statistical methods.

Ari Vappula and his partner Satu Harden from Orimattila operated 420 hectares of cultivated land at Haarala farm last year, although the average farm size is around 50 hectares. Despite the extensive land, farming was not financially sustainable. Public financial records show the business generated a turnover of €382,000, resulting in a loss of €130,000, with clothing sales accounting for €245,000 of that turnover.

Earlier this spring, Vappula decided to cease farming altogether to focus solely on selling branded clothing, a venture that began as a hobby driven by their interest in fashion. The clothing business, which has operated in an old barn for around five years, has now become their primary source of income. Vappula noted that while revenues from both farming and retail were similar, lower costs in retail ultimately made clothing sales more profitable.

The profitability of farming has been declining over the past decade, leading to a significant reduction in the number of farms. Meanwhile, farmers’ incomes continue to decrease, with forecasts suggesting an average entrepreneurial income of €21,000 this year—less than €8 per hour. Pro Agria’s development director, Pekka Häkkinen, emphasized the importance of supplementary businesses, stating that small-scale enterprises can grow into vital sources of income, sometimes even outperforming agriculture.